Some of the letters are for the release of one mortgage note some of the letters are for both the first and second mortgage note. The most important item to look for in a short sale approval letter is some sort of wording from the lender that states that the homeowner or borrower is no longer responsible for the amount of the note or that the debt is considered “settled” or “paid off.” This is a major concern where there was a second or equity line mortgage taken out on the home since that is where homeowners can run into trouble being still held responsible for that loan money even after a home is sold unless they receive a short sale approval letter for their second loan which mentions that the debt will be forgiven or considered paid off or settled .
It is important that a short sale approval letter is given for each loan on the home with the loan number of the loan which is being forgiven listed on that letter. Sometimes the letters sent for the first and second loan appear very different in their writing and terms from the lender. Other times the letters sent for the first and second loan are identical but with a different loan number printed on each page. Obviously here I had to delete the loan numbers and private information for public viewing but each letter did have the loan number of each loan printed on the front page. It is also important to check that the loan number on the approval letter is correct for the homeowner’s protection. Please contact me with any questions about understanding the terms of any of these letters or for a confidential consultation about short sales and any other foreclosure avoidance alternatives available.